The S&P 500 yields only 1.7%, versus 2.9% for Morgan
Stanley Capital International's EAFE index of foreign stocks. The foreign withholding tax on dividends--typically 15%--may not be a disadvantage. You can credit the first 15 percentage points of that tax against your U.S. tax bill.

We screened our Global 2000 for companies with growing dividends over the past one, three and five years. We limited the list to companies that pay out no more than 55% of net income as dividends and that are expected by analysts to expand
earnings in both fiscal 2003 and fiscal 2004.

At the top of our list: Allied Irish Banks, which yields 3.9%.

COMPANY

PRICE

DIVIDENDYIELD

DIVIDENDPAYOUT

Alliance UniChem

$8.14

3.4%

51%

Allied Irish Banks

15.01

3.9

40

Bank of Nova Scotia

42.78

3.0

35

Johnson Matthey

14.37

3.2

50

Wolseley

10.80

3.3

43

Prices as of May 30. Sources: FT Interactive Data and Thomson First Call via FactSet Research Systems.

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